Chevron's (NYSE: CVX) share price has underperformed oil prices and other energy stocks over the past few months. A big factor driving that relative underperformance is the uncertainty surrounding its massive acquisition of (NYSE: HES). That's after rival ExxonMobil (NYSE: XOM) launched an arbitration case to assert its rights to buy Hess' stake in the Stabroek block offshore Guyana, which Exxon operates.

Chevron doesn't think Exxon's case has any merit, and it's confident it will close the Hess deal later this year. That acquisition could really move the needle for the oil stock in the coming years.

During its recent first-quarter conference call, Chevron's management team discussed the progress made in closing the Hess deal. CEO Mike Wirth stated: "The merger with Hess is advancing, and we intend to certify substantial compliance with the FTC second request in the coming weeks. We believe that a pre-emption right (that Exxon is attempting to establish) does not apply to this transaction and are confident this will be affirmed in arbitration."

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Source Fool.com